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Rebar production among China’s 137 steel mills including integrated mills and re-rollers under Mysteel’s weekly survey increased for the seventh successive week over April 29-May 5, or up 1.9% or 70,000 tonnes on week to 3.77 million tonnes, as some rolling lines have been back to production during the Labour Day holiday.
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China’ steel mills and traders have renewed their interest in exporting, lured by the far higher global steel prices that are more than sufficient to cover the difference now that Beijing has removed tax rebates on most of the commercial-grade steel exports since May 1, market sources shared on May 8, a make-up working day in China after the Labour Day holiday over May 1-5.
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Below is the brief near-term outlook of the five key steel products Mysteel shares on a weekly basis, drawing upon the results of related surveys and communication with the Chinese market participants.
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China’s domestic steel prices have been on another round of climb-ups after the Labour Day holiday over May 1-5, all according to Mysteel’s assessments, as both domestic demand and market optimism had been lending support, and steelmaking raw material prices have been following closely behind, Mysteel Global noted.
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The prices of steel futures in China increased significantly after the Labour Day holiday over May 1-5, with hot-rolled coil (HRC) futures even out-performing those of rebar given the sustained steady demand and the rise in HRC prices globally, Mysteel Global noted. The further strengthening of raw materials prices lately lent finished steel prices some support too, market insiders remarked.
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Stocks of the five major finished steel products held by the 184 Chinese steel mills under Mysteel’s regular survey saw some accumulation over April 29-May 5 as consumption among end-users decreased because of the Labour Day holiday over May 1-5.
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The inventories of finished steel products held by dealers across China reversed up over the April 30-May 6 period after declining for the prior eight weeks straight. But market sources said the uptick was just a symptom of the slowdown in sales during the Labour Day holiday over May 1-5 and that market sentiment stayed firm.
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Steel futures prices in China continued to strengthen during April 26-30 amid stable demand and market optimism, Shanghai Futures Exchange (SHFE) data shows. But market watchers warn that both supportive factors and uncertainties will weigh on prices during the coming month.
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Firm demand from steel users led stocks of the five major finished steel products held by the 184 Chinese steel mills under Mysteel’s regular survey to slip for the tenth week over April 22-28 to a three-month low of 6.4 million tonnes.
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Chinese traders saw their inventories of steel at hand decline further over April 23-29 as business throughout this month remained steady, new Mysteel data shows. But market sources warned that the pace of stocks digestion may wane a little early next month from the disruption caused by the coming Labour Day holiday over May 1-5.
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The steady climb in Chinese steel export prices which began after Chinese New Year in late February continued last week, and export sales, especially those of hot-rolled coil (HRC), regained their pace even though the issue of the rebate cuts remains undecided, according to Mysteel’s latest report.
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China’s most-traded October hot-rolled coil (HRC) contract price on the Shanghai Futures Exchange (SHFE) grew Yuan 191/tonne ($29.5/t) on April 23 from the settlement price of April 16, and then gained another Yuan 168/t from the settlement of last Friday at the close of April 26’s morning session, which was mainly in response to the latest curbs on steel mills in Handan of Hebei as well as the soaring global HRC prices.
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Rebar production among China’s 137 steel mills including integrated mills and re-rollers under Mysteel’s weekly survey grew for the fifth straight week over April 15-21, inching up 0.7% or 26,100 tonnes on week to 3.61 million tonnes, in the context of the remaining firm domestic demand and high steel margins.
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Finished steel prices in China’s physical and futures markets strengthened over April 19-23, which was mainly due to the newly-imposed curbing on the steel mills’ steelmaking facilities in Handan, North China’s Hebei province since April 21 until June 30, Mysteel Global noted.
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Below is the brief near-term outlook of the five key steel products Mysteel shares on a weekly basis, drawing upon the results of related surveys and communication with the Chinese market participants. April 25 is a make-up working day in China ahead of the Labour Day holiday over May 1-5.
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The futures prices of steel products in China increased Yuan 168/tonne ($25.9/t) over April 19-23 week from the settlement price one week earlier, in response to news that production restrictions are to also be applied to steelmakers in Handan, North China’s Hebei province, market watchers noted.
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Stocks of the five major finished steel products held by the 184 Chinese steel mills under Mysteel’s regular survey continued to empty over April 15-21 as demand from end-users remained steady during the peak season for steel consumption.
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The inventories of major finished steel items held by the Chinese traders Mysteel regularly canvasses declined for the seventh week in a row during April 16-22, falling by another 1 million tonnes on week, Mysteel’s survey has found. And though the pace of the decline slowed from the 1.5 million tonnes on-week drop during the prior period, market watchers suggest the slower decline will make no dent in the strong steel prices prevailing now.
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China’s price of Q235 4.75mm hot-rolled coil (HRC) assessed by Mysteel reversed down by Yuan 28/tonne ($4.3/t) on week as of April 16 to reach Yuan 5,565/t including the 13% VAT after increasing almost without a break since late February. But industry insiders suggest the steady demand and declines in supply will lend prices some support.
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The pickup in Chinese steel export prices which began after the Chinese New Year holiday in late February continued last week, partly because the issue of a possible cut in export tax rebates on steel remains be clarified. As a consequence, Chinese steel suppliers have adopted different strategies to cope with the policy uncertainties, Mysteel Global understands.
